As part of the Mauritius Budget 2019-2020, the Government of Mauritius announced a review of its Special Purpose Fund (SPF) regime with the intent to diversify and expand Mauritius as a leading international financial centre. This has resulted in the recent introduction of the Financial Services (Special Purpose Fund) Rules 2021 (“SPF Rules”). Here, we provide a succinct overview of the Mauritius SPF’s key features in line with these new rules.
The introduction of the SPF Rules is evidence of Mauritius’ efforts to continuously diversify its range of institutional products and consolidate its position as a jurisdiction of choice for India and Africa-related investments.
The objective of the revamped SPF Rules is to ease access to new markets and offer international fund managers and GPs the ability to establish a tax exempt entity that has economic substance in Mauritius to attract investors.
Some of the salient features of the SPF are:
- Both open- and closed-end funds can apply for authorisation to operate as a SPF
- The SPF is a tax exempt entity under the Income Tax Act 1995
- The SPF can offer its shares, solely by way of private placements, to investors that have significant experience and knowledge of fund investments
- The SPF can have a maximum of 50 investors
- The minimum subscription per investor in an SPF is US$100,000
- The SPF shall, at all times, be managed by a collective investment scheme (CIS) manager and administered by a CIS administrator
- The SPF, the CIS manager and the CIS administrator shall carry out their relevant core income-generating activities in or from Mauritius, and shall:
- employ, directly or indirectly, an adequate number of suitably qualified persons to conduct such core income-generating activities
- incur a minimum expenditure proportionate to the level of such activities.
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With our extensive local insight and fund services expertise, IQ-EQ Mauritius would be delighted to assist with the structuring, establishment and full fund administration of your SPF.
Please don’t hesitate to contact me or your usual relationship manager if you wish to discuss your requirements.